The foundation of historic fort building in the capital of erestwhile Poonch Riyasat, presently the headquarter of truncated Poonch district, was laid by Raja Adbul Razaq Khan in 1713 A.D. The actual construction work was started by his illustrious son Raja Rustam Khan who was a great lover of architecture and after whose name Poonch was earlier known as Rustam Nagar. Originally the Fort was planned as a composite structure for the fortification of the town as well as for housing the Royal Palace.
Alyhough Raja Rustam Khan originally belonged to Rathore clan of Rajasthan, the architectural style of the Fort had distinct Mughal influence although quality of construction had not reached the perfection of better known Mughal architecture.
Fort building in his present style and shape owes to the benevolence of Raja Moti Singh (1850-1892) who engaged an European arcitect to design the front block of the Fort. The work done was so superb that the appearance of the fort changed into a Palace of exquisite beauty which dominates the entire town of Poonch
It was during Raja Baldev Singh's time that the fort building complex was converted into a secretariat of the kingdom after shifting the Palace to Moti Mahal. After the accession of J & K State into Indian Union the Fort building was being used to accomodate various district offices.